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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. American Realty Investors's annualized net income for the quarter that ended in Jun. 2026 was $-4.04 Mil. American Realty Investors's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $619.09 Mil. Therefore, American Realty Investors's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was -0.65%.
The historical rank and industry rank for American Realty Investors's Return-on-Tangible-Equity or its related term are showing as below:
ARL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.21 Med: 1.02 Max: 93.79
Current: 1.36
During the past 13 years, American Realty Investors's highest Return-on-Tangible-Equity was 93.79%. The lowest was -7.21%. And the median was 1.02%.
ARL's Return-on-Tangible-Equity is ranked worse than 63.93% of 1719
companies
in the Real Estate industry
Industry Median: 4.38
vs ARL: 1.36
American Realty Investors (NYSE:ARL) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
American Realty Investors Return-on-Tangible-Equity Related Terms
American Realty Investors Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for American Realty Investors's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Realty Investors Return-on-Tangible-Equity Chart
ARL vs RMAX, NTPIF, CHCI: Return-on-Tangible-Equity Comparison
For the Real Estate Services subindustry, American Realty Investors's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Realty Investors Return-on-Tangible-Equity vs Real Estate Industry
For the Real Estate industry and Real Estate sector, American Realty Investors's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where American Realty Investors's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -0.65% mean?
American Realty Investors (ARL) has a Return-on-Tangible-Equity of -0.65% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on American Realty Investors and its competitors. According to the industry distribution chart, American Realty Investors ranks #1099 out of 1719 companies in the Real Estate industry, placing it in the top 63.9%.
Is American Realty Investors' Return-on-Tangible-Equity too high?
American Realty Investors' current Return-on-Tangible-Equity is -0.65%. Based on the distribution chart, American Realty Investors ranks #1099 out of 1719 companies in the Real Estate industry, which is below the industry midpoint. Overall, American Realty Investors has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does American Realty Investors' Return-on-Tangible-Equity compare to RMAX and NTPIF?
According to the Real Estate industry distribution chart, American Realty Investors ranks #1099 out of 1719 companies for Return-on-Tangible-Equity. This places American Realty Investors in the lower half of its industry. The industry median Return-on-Tangible-Equity is 4.38. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Real Estate company?
The median Return-on-Tangible-Equity among Real Estate companies is 4.38, based on 1,719 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on American Realty Investors and its competitors. For the Real Estate industry, the median Return-on-Tangible-Equity is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Realty Investors's current Return-on-Tangible-Equity is -0.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Realty Investors stock overvalued right now?
Based on GuruFocus' analysis, American Realty Investors (ARL) is currently considered Fairly Valued. The stock's GF Value™ is $16.41, compared to a current price of $16.08 — trading 2% below its estimated fair value. The current Return-on-Tangible-Equity is -0.65%. American Realty Investors' overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For American Realty Investors (ARL), the current Return-on-Tangible-Equity is -0.65% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Realty Investors (ARL) Overvalued in 2026?
Based on GuruFocus' analysis, American Realty Investors stock appears to be undervalued.
The current stock price of $16.08 is trading 2% below its estimated GF Value™ of $16.41.
GuruFocus considers American Realty Investors to be Fairly Valued.
Key valuation signals for ARL:
Return-on-Tangible-Equity: -0.65%
GF Value™: $16.41 vs. price of $16.08 (2% below fair value)
No single metric tells the full story. See the ARL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Realty Investors Inc is a fully integrated externally managed real estate company. The company operates high-quality multifamily and commercial properties throughout the Southern United States and also invests in mortgage notes receivable and in land that is either held for appreciation or development. It operates in two reportable segments: the acquisition, development, ownership and management of multifamily properties (Residential Segment) and the acquisition, ownership and management of commercial real estate properties (Commercial Segment). Maximum revenue is generated from its Residential segment, which includes the rental of apartments and other tenants.
61GF Score
Get the complete analysis for ARL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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